American Oil and Gas Reporter - June 2024 - 21

and treating capacity to more than 3
billion cubic feet a day.
The HOA contemplates the parties
negotiating a 20-year offtake agreement
that is indexed to the Henry Hub price
plus a liquefaction fee, with appropriate
credit support, to provide the basis for
project financing of Driftwood LNG,
Tellurian reports.
" Today's agreements with Aethon
take us several steps closer to
developing the Driftwood LNG project,
for which Aethon is a vital partner, "
says Tellurian Executive Chairman
Martin Houston. " The offtake
agreement for 2 mtpa provides the
foundation to accelerate Driftwood and
demonstrates that we have successfully
aligned our commercial offerings to
meet the needs of potential customers. "
" The expanding scale of our
vertically integrated business continues
to deliver capital efficiency and
industry-leading margins as we work to
accelerate the role of natural gas in the
broader energy transition, " relates
Aethon Energy Chief Executive Officer
Albert Huddleston. " This Fund II and
Fund III acquisition provides
complementary growth opportunities
alongside our extensive upstream and
midstream footprint in the Haynesville
with more than 20 years of existing
inventory life. Our partnership with
Tellurian will provide our downstream
LNG customers with the lowest
methane emission intensity in North
America. "
Tellurian predicts the transaction will
close during the second quarter. ❒
Natural Gas Storage
Slows Injection Pace
WASHINGTON-Underground
natural gas storage in the United States
stood at 2.795 trillion cubic feet on May
24, 26.5% above the five-year average,
according to the U.S. Energy
Information Administration. That was
up 311 billion cubic feet from the 2.484
Tcf in storage on April 26, and 380 Bcf
more than a year ago, when gas storage
stood at 2.415 Tcf.
Gas storage in the East Region was
538 Bcf on May 24, 25.7% above the
five-year average, and 113 Bcf more
than on April 26, when storage stood at
425 Bcf, 27.6% above the five-year
average. East Region gas storage on
May 24 increased 25 Bcf from a year
ago, EIA reports.
In the Midwest, gas storage stood at
652 Bcf on May 24, 30.4% above the
five-year average and 88 Bcf more than
the 564 Bcf in storage on April 26,
which was 38.9% above the five-year
average. May 24 Midwest gas storage
was 84 Bcf more than a year ago.
In the Mountain Region, EIA
continues, gas storage was 210 Bcf on
May 24, 72.1% above the five-year
average and 28 Bcf more than the 182
Bcf stored on April 26, which was
87.6% above the five-year average. May
24 gas storage in the Mountain Region
was 85 Bcf more than a year ago.
The Pacific Region's gas in storage
was 267 Bcf on May 24, 24.8% above
the five-year average and 27 Bcf more
than the 240 Bcf stored on April 26,
which was 38.7% above the five-year
average. Pacific Region gas storage on
May 24 was up 143 Bcf from a year ago.
In the South-Central Region, gas
storage levels on April 26 were 1.128
Tcf, 19.5% above the five-year average
and 55 Bcf more than the 1.073 Tcf in
storage on April 26, which was 29.0%
above the five-year average. The May
24 gas storage level for the SouthCentral
Region was up 66 Bcf from a
year ago. ❒
Make Better Hedging Decisions
Try our weekly in-depth analysis of
natural gas and oil markets free
Visit EBWAnalytics.com for your free subscription
Advising gas & oil producers, buyers and traders since 2003
JUNE 2024 21
http://www.EBWAnalytics.com
American Oil and Gas Reporter - June 2024

Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2024
